I think Ridley should be playable, but accusing Toad of not having much potential? I simply can't agree with that. Toad's moveset in and of itself may not seem particularly stunning, but his
stats and general ability are something we don't yet have in Smash. Toad is one of the lightest Mario characters, one of the fastest, one of the worst in terms of aerial mobility and yet at the same time has strength that rivals Donkey Kongs (he doesn't slow down when holding large objects - something which could easily translate to him being able to carry people over his head for a grab).
Plus you know, there's the little quirks... personally I'd want them to make Toad's recovery his Down-B (lolwut), in which he does
this move. Plus of course, he could do with a counter of his own if he's taking that from Peach's moveset.
A characters 'potential' isn't about the quantity of aggressive moves they have in their back-catalog (though if it were, Ridley would win hands down) - it's about what the character as a whole offers to the franchise, and Toad could potentially offer just as much to Smash as Ridley could.
So yeah... Ridley
and Toad 4 Smash.